In each of Problems 1 through 26: (a) Find the general solution in terms of real functions. (b) From the roots of the characteristics equation, determine whether each critical point of the corresponding dynamical system is asymptotically stable, stable, or unstable, and classify it as to type. (c) Use the general solution obtained in part (a) to find a two parameter family of trajectories X = x 1 i + x 2 j = y i + y ' j of the corresponding dynamical system. Then sketch by hand, or use a computer, to draw a phase portrait, including any straight-line orbits, from this family of trajectories. y ' ' + 2 y ' − 8 y = 0
In each of Problems 1 through 26: (a) Find the general solution in terms of real functions. (b) From the roots of the characteristics equation, determine whether each critical point of the corresponding dynamical system is asymptotically stable, stable, or unstable, and classify it as to type. (c) Use the general solution obtained in part (a) to find a two parameter family of trajectories X = x 1 i + x 2 j = y i + y ' j of the corresponding dynamical system. Then sketch by hand, or use a computer, to draw a phase portrait, including any straight-line orbits, from this family of trajectories. y ' ' + 2 y ' − 8 y = 0
(a) Find the general solution in terms of real functions.
(b) From the roots of the characteristics equation, determine whether each critical point of the corresponding dynamical system is asymptotically stable, stable, or unstable, and classify it as to type.
(c) Use the general solution obtained in part (a) to find a two parameter family of trajectories
X
=
x
1
i
+
x
2
j
=
y
i
+
y
'
j
of the corresponding dynamical system. Then sketch by hand, or use a computer, to draw a phase portrait, including any straight-line orbits, from this family of trajectories.
We consider a one-period market with the following properties: the current stock priceis S0 = 4. At time T = 1 year, the stock has either moved up to S1 = 8 (with probability0.7) or down towards S1 = 2 (with probability 0.3). We consider a call option on thisstock with maturity T = 1 and strike price K = 5. The interest rate on the money marketis 25% yearly.(a) Find the replicating portfolio (φ, ψ) corresponding to this call option.(b) Find the risk-neutral (no-arbitrage) price of this call option.(c) We now consider a put option with maturity T = 1 and strike price K = 3 onthe same market. Find the risk-neutral price of this put option. Reminder: A putoption gives you the right to sell the stock for the strike price K.1(d) An investor with initial capital X0 = 0 wants to invest on this market. He buysα shares of the stock (or sells them if α is negative) and buys β call options (orsells them is β is negative). He invests the cash balance on the money market (orborrows if the amount is…
Determine if the two statements are equivalent using a truth table
Use Pascal's triangle to expand the binomial
(6m+2)^2
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